GDF convened its APAC working group to respond to ASIC’s INFO225 Consultation Paper 381 on Digital assets: Financial products and services.
GDF wished to call attention to what we believe may be some of the broader risks of the proposals and potential for unintended consequences. While the consultation and steps toward an Australian regulatory regime are welcome steps forward, we believe more consideration should be given to the unique innovations within digital asset markets, as well as evolving regulations in both other jurisdictions as well as from global standard setters. Global best practice and the advances happening both in industry and in other fast-moving jurisdictions can help to frame an Australian approach.
The key themes set out in the response are:
1. We believe that instead of primarily lifting from existing requirements, ASIC should create a dedicated regulatory framework taking into consideration the unique nuances and characteristics of digital assets;
2. We encourage proportionality and a risk-based, technology neutral approach to building out the digital assets regulatory framework;
3. We believe additional clarity is needed on scope and definitions; and
4. We believe transitional provisions and regulatory relief will be essential.